Invest in Manhattan real estate today

Compound developed its Manhattan Residential ReTF to build wealth the same way that the world’s shrewdest investors do — by acquiring a portfolio of Manhattan properties and holding them for the long term.

Compound is bullish on Manhattan residential real estate

Manhattan residential real estate has historically outperformed other comparable asset classes like the S&P 500 and even gold. In the past 20 years, the median price of a Manhattan condominium has appreciated 323%.

There is a window of opportunity to buy now

There is significant new supply coming online. The market has been weak and sellers are highly negotiable. We believe this makes it a great time to make a long-term real estate investment.

The fund is targeting 12 to 15% annual returns

The bulk of the return will come from price appreciation, with a smaller component from rental income. Compound will seek to maximize returns by buying units in bulk and at a discount and by using short-term rental strategies when appropriate.

Manhattan condominiums have outperformed both stocks and bonds

Over the past 20 years, the median price of a Manhattan condominium has increased by more than 300% :

Manhattan Condominium Median Sale Price

S&P 500

Bloomberg Barclays US Aggregate Bond Index

2000200220042006200820102012201420162018100200300400500323%107%156%

Source: Douglas Elliman Q4 2018 Market ReportSource: Yahoo FinanceSource: Bloomberg* 20 year period of 1999-2019 selected for illustrative purposes; additional years and data are available upon request.

Why invest in Manhattan properties now?

The Manhattan residential real estate market has softened significantly, which means distressed sellers are eager to close deals. We believe this makes it an opportune time to invest in residential real estate for the long term.

The gold standard in real estate investing

Manhattan is a 22-square mile island, surrounded by densely-populated urban and suburban areas, with an 834-acre park at its center. Historically, the demand for Manhattan apartments is high while the supply is limited, making it some of the world’s most coveted real estate.

Primary Investment Objectives

Buy and hold investment strategy

Acquire residential properties in Manhattan that we believe are likely to generate significant long-term appreciation and cash flow.

Maximize the potential for capital appreciation. We will invest in properties at below-market values, in neighborhoods with high-growth potential, and in properties available from distressed sellers or who face time-sensitive deadlines.

Lease properties to residential tenants on a long-term basis (12-month leases) or by operating short-term furnished rentals in compliance with local laws.

* Dots on map are indicative of potential property acquisitions and targeted geographic dispersion of portfolio, but are not actual investments yet made by the fund.

The perfectly uncorrelated asset to diversify your portfolio

Manhattan condominium prices have historically been uncorrelated to both the equities market and the bond market.

Correlation between Manhattan Condos & Stocks: -1.7%

Correlation between Manhattan Condos & Bonds: 2.6%

Manhattan Condominium Median Sale Price

S&P 500

Bloomberg Barclays US Aggregate Bond Index

-50%-40%-30%-20%-10%0%10%20%30%40%50%19992018

Source: Douglas Elliman Q4 2018 Market ReportSource: Yahoo FinanceSource: Bloomberg* 20 year period of 1999-2019 selected for illustrative purposes; additional years and data are available upon request.

Fund details

General terms about the Compound Manhattan Residential ReTF fund are provided here. For complete details, please view fund documents here or contact us by email at [email protected].

Targeted Returns

Compound Manhattan Residential ReTF is targeting 12 to 15% annual returns. Most of this return will come from long-term price appreciation. This ReTF will also generate a nominal yield from rental income. (However, there is no guarantee that the fund will achieve this targeted return.)

Liquidity

Compound intends to provide investors with liquidity by applying to list our shares on NYSE or Nasdaq after this ReTF becomes eligible. Once the ReTF shares have been listed on an exchange, they will be fully transferable like any other publicly listed stock. Until then, there are restrictions on transferring the shares.

Minimums & Eligibility

Compound is currently offering a pre-IPO private placement for this ReTF that is open to U.S.-based or foreign institutions, family offices, and “accredited investors” (under Rule 501(a) of Regulation D). The minimum investment amount for this ReTF is $25,000 (2,500 shares).

Fees

Asset Management - 1.0% of equity value (paid quarterly)

Acquisition - 1.0% of property purchase price

Equity Incentive Awards (Promote) - 15% of the total annual return subject to a 6% hurdle, payable in shares to the Fund Manager.

Thank you for visiting www.getcompound.com, the leading platform for investing in city-specific real estate funds in the world’s best markets. Compound Asset Management, Inc. ("Compound") operates our website. By using this website, you accept our Terms of Use and Privacy Policy. The content that we have provided on this site has been prepared by Compound solely for informational purposes using its proprietary or publicly available sources of information. It has been prepared to assist interested parties in making their own evaluation of Compound and does not purport to contain all of the information that may be relevant to making investment decisions. In all cases, interested parties should conduct their own investigation and analysis of Compound, and the data set forth on this site and other information (e.g., offering memorandums) provided by or on behalf of Compound. Certain information contained here may be derived from information provided by industry sources and third party data providers, as indicated by the applicable attributions. Compound does not make any representation as to the accuracy or reliability of such information. . Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. This website contains forward-looking statements, which reflect Compound’s beliefs, assumptions and expectations of the funds’ future performance, taking into account all information currently available to Compound. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to Compound. Actual results could vary materially from those set forth in such forward-looking statements. If a change occurs, Compound’s business, prospects, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements. Compound disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes. None of the properties displayed on this site are owned by Compound. They are intended to represent the class of properties in which Compound may seek to invest.